So I have been analyzing my spending habits for the previous year, and thought to share with the community and see how others are doing. This is the breakdown; percentages as of post-tax income (salary only). 1) 27.5% on "essential" expenses - rent, car insurance/gas, utilities, phone plan, food, etc 2) 22.5% on "optional" expenses - dining out, travel, entertainment 3) 22.5% on ESPP (contributing max 15% of pre-tax allowed) 4) 27.5% on savings - mostly Vanguard, Wealthfront and a little bit of Robinhood What do people think? Curious to see how fellow Blinders as well spend their hard-earned monies. TC: ~350K (most of it stock, only salary spent above). YOE: 2
That tc at 10xgenomics?
Biotech startups had some of the best IPOs last year, so don't be surprised
Your TC is low. Should LC instead of focusing on budgeting.
50% spending? You’ll never be rich this way. I do not spend that much with entire family and we are not frugal types
I guess I'm trying to enjoy my 20s. Thanks for the feedback though. How much do you save?
Saving and investing are the same. Last year I spent less than 20% gross, the rest was either saved or expropriated by government to fund its wars and feed lazy bastards. This year I’ll spend more because my income is lower
What is your post tax income? 50% of $350k, for 1 month is 14.5k/mo of expenses, which I'm sure is high
The percentages are from the salary alone, should have clarified.
In the post you say the percentages are based on your post tax income, so what is your post tax income
Single in Toronto 🇨🇦 with 4 YoE Employment Income: 170k Deductions - last year tax return: 55k Housing 35k (including principle) RRSP + Savings: 55k Other: 25k (Eating out, travel, shopping, utilities, etc.) Also government owes me 10k that I won't get until end of February.
How did you withhold that much extra on your taxes?
From contributing to RRSP since 2017 and not using the past deductions in full (cuz I knew my income would grow into higher tax bracket). Now I'm at 47.97% marginal rate, it's time to start using them all up. I made only 90k and 120k respectively in the 2 years prior and there wasn't much tax worth deducting. The American equivalent of RRSP is IRA.
I save just about everything. 10% ESPp, 15% 401k. I divide my paycheck with enough each paycheck going to checking to cover bills + small spending allotment. Everything else goes straight to savings. Hint: do not ever change the amount going to checking, even if you get raises or better jobs. I still have the same Amount going to checking as I did when I made 40k a year in retail. Needless to say, savings is now substantial. If I want to buy something outside normal expenses I have to make an active effort to transfer from savings...makes you think twice about spending it as its not freely sitting in the spend account. House paid off, debt free. You also think twice about how much you spend on cars since you'll be paying cash.
I spent 27% of my base salary last year (before taxes). It’s about a 2% increase from the year before. I splurged on nice furniture when I moved. It’ll probably increase a bit this year because I have larger planned expenses this year. Everything that doesn’t go to the government gets invested. I’m pretty much cash flow even in my savings account, American credit cards are incredible and pretty much give you a month of interest free loan.
Insane TC for 2YOE!
Thanks! Our stock has appreciated a lot since the IPO last year, hence the fat TC. The actual salary (from which these percentages are calculated) is much more reasonable for someone with my YOE
What’s your base